New Jersey-2012-A1491-Introduced

An Act concerning union dues and revising parts of the statutory law.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1967, c.310 (C.52:14-15.9e) is amended to read as follows:

1. a. Whenever any person holding employment, whose compensation is paid by this State or by any county, municipality, board of education or authority in this State, or by any board, body, agency or commission thereof shall indicate in writing to the proper disbursing officer his desire to have any deductions made from his compensation, for the purpose of paying the employee's dues to a bona fide employee organization, designated by the employee in such request, and of which said employee is a member, such disbursing officer shall make such deduction from the compensation of such person and such disbursing officer shall transmit the sum so deducted to the employee organization designated by the employee in such request.

b. Any such written authorization may be withdrawn by such person holding employment at any time by the filing of notice of such withdrawal with the above-mentioned disbursing officer. The filing of notice of withdrawal shall be effective to halt deductions as of the [January 1 or July 1] first day of the second calendar month next succeeding the date on which notice of withdrawal is filed.

c. Nothing herein shall preclude a public employer and a duly certified majority representative from entering into a collectively negotiated written agreement which provides that employees included in the negotiating unit may only request deduction for the payment of dues to the duly certified majority representative. Such collectively negotiated agreement may include a provision that existing written authorizations for payment of dues to an employee organization other than the duly certified majority representative be terminated. Such collectively negotiated agreement may also include a provision specifying the effective date of a termination in deductions as of the July 1 next succeeding the date on which notice of withdrawal is filed by an employee with the public employer's disbursing officer.

d. This authorization for negotiation of exclusive dues deduction provisions shall not apply to any negotiating unit which includes employees of any local school district or county college.

e. No bona fide employee organization shall use any of the moneys that a public employer deducts from its employees' compensation for the purpose of paying that organization to engage in political activities as defined in section 3 of P.L. , c. (C. ) (now before the Legislature as this bill).

f. As used in this section, dues shall mean all moneys required to be paid by the employee as a condition of membership in an employee organization [and any voluntary employee contribution to a committee or fund established by such organization, including but not limited to welfare funds, political action committees, charity funds, legal defense funds, educational funds, and funds for donations to schools, colleges, and universities], and shall exclude money used by a bona fide employee organization to engage in political activities as defined in section 3 of P.L. , c. (C. ) (now before the Legislature as this bill)..

(cf: P.L.1981, c.345, s.1)

2. Section 2 of P.L.1979, c.477 (C.34:13A-5.5) is amended to read as follows:

2. a. Notwithstanding any other provisions of law to the contrary, the majority representative and the public employer of public employees in an appropriate unit shall, where requested by the majority representative, negotiate concerning the subject of requiring the payment by all nonmember employees in the unit to the majority representative of a representation fee in lieu of dues for services rendered by the majority representative. Where agreement is reached it shall be embodied in writing and signed by the authorized representatives of the public employer and the majority representative. If no agreement is reached, the majority representative may petition the commission to conduct an investigation. If the commission determines during the investigation that a majority of the employees in the negotiations unit are voluntary dues paying members of the majority representative and that the majority representative maintains a demand and return system as required by subsection c. of this section and section 3 of P.L.1979, c.477 (C.34:13A-5.6), the commission shall order the public employer to institute a payroll deduction of the representation fee in lieu of dues from the wages or salaries of the employees in the negotiations unit who are not members of the majority representative.

b. The representation fee in lieu of dues shall be in an amount equivalent to the regular membership dues, initiation fees and assessments charged by the majority representative to its own members less the cost of benefits financed through the dues, fees and assessments and available to or benefiting only its members, but in no event shall such fee exceed 85% of the regular membership dues, fees and assessments.

c. Any public employee who pays a representation fee in lieu of dues shall have the right to demand and receive from the majority representative, under proceedings established and maintained in accordance with section 3 of P.L.1979, c.477 (C.34:13A-5.6), a return of any part of that fee paid by him which represents the employee's additional pro rata share of expenditures by the majority representative that is [either in aid of activities or causes of a partisan political or ideological nature only incidentally related to the terms and conditions of employment or] applied toward the cost of any other benefits available only to members of the majority representative. The pro rata share subject to refund shall not reflect, however, the costs of support of lobbying activities designed to foster policy goals in collective negotiations and contract administration or to secure for the employees represented advantages in wages, hours, and other conditions of employment in addition to those secured through collective negotiations with the public employer.

(cf: P.L.2002, c.46, s.1)

3. (New section) a. Before August 31 of each year, each public employee representative organization established pursuant to P.L.1941, c.100 (C.34:13A-1 et seq.) shall provide to all of the public employees in each bargaining unit it represents and to the appeal board established pursuant to section 3 of P.L.1979, c.477 (C.34:13A-5.6):

(1) a statement, verified by an independent auditor or by some other suitable method permitted by the commission, listing its bargaining units, and by bargaining unit, dues paying members and the amount of dues and employees paying a representation fee in lieu of dues and that amount, actual expenditures by that employee organization for the most recently completed fiscal year under the categories of "political activities" and "representation activities" and, within representation activities, under categories of "representation activities for all employees in unit" and "representation activities only for members;"

(2) the results of its calculation of the ratio of political activity expenditures to total expenditures for that same fiscal year and its calculation of the ratio of "representation activities for all employees in unit" and "representation activities only for members."

b. A public employee who pays dues to the majority representative may challenge the veracity of the information provided under subsection a. of this section with respect to the employee organization's engagement in political activities and may seek a refund of a portion of the dues paid by filing a challenge with the appeal board established pursuant to section 3 of P.L.1979, c.477 (C.34:13A-5.6).

c. A public employee who pays a representation fee in lieu of dues may challenge the veracity of the information provided under subsection a. of this section with respect to the employee organization's engagement in political activities and as permitted pursuant to subsection c. of section 2 of P.L.1979, c.477 (C.34:13A-5.5).

d. For purposes of this section, "political activities" means any activities carried out for the purpose of influencing in whole or in part any election for a State, local government or board of education office, including activities or causes of a partisan political or ideological nature engaged in by a public employee representative organization for those purposes and including contributions to a political committee, continuing political committee, or both, as defined in section 3 of P.L.1973, c.83 (C.19:44A-3), established by the employees' majority representative for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a), which activities are not pertinent to its duties as a bargaining representative as those duties are enumerated under P.L.1941, c.100 (C.34:13A-1 et seq.)

4. Section 4 of P.L.1965, c.173 (C.34:11-4.4) is amended to read as follows:

4. No employer may withhold or divert any portion of an employee's wages unless:

a. The employer is required or empowered to do so by New Jersey or United States law; or

b. The amounts withheld or diverted are for:

(1) Contributions authorized either in writing by employees, or under a collective bargaining agreement, to employee welfare, insurance, hospitalization, medical or surgical or both, pension, retirement, and profit-sharing plans, and to plans establishing individual retirement annuities on a group or individual basis, as defined by section 408 (b) of the federal Internal Revenue Code of 1986 (26 U.S.C. s.408(b)), or individual retirement accounts at any State or federally chartered bank, savings bank, or savings and loan association, as defined by section 408 (a) of the federal Internal Revenue Code of 1986 (26 U.S.C. s.408(a)), for the employee, his spouse or both.

(2) Contributions authorized either in writing by employees, or under a collective bargaining agreement, for payment into company-operated thrift plans; or security option or security purchase plans to buy securities of the employing corporation, an affiliated corporation, or other corporations at market price or less, provided such securities are listed on a stock exchange or are marketable over the counter.

(3) Payments authorized by employees for payment into employee personal savings accounts, such as payments to a credit union, savings fund society, savings and loan or building and loan association; and payments to banks for Christmas, vacation, or other savings funds; provided all such deductions are approved by the employer.

(4) Payments for company products purchased in accordance with a periodic payment schedule contained in the original purchase agreement; payments for employer loans to employees, in accordance with a periodic payment schedule contained in the original loan agreement; payments for safety equipment; payments for the purchase of United States Government bonds; and payments to correct payroll errors; provided all such deductions are approved by the employer.

(5) Contributions authorized by employees for organized and generally recognized charities; provided the deductions for such contributions are approved by the employer.

(6) Payments authorized by employees or their collective bargaining agents for the rental of work clothing or uniforms or for the laundering or dry cleaning of work clothing or uniforms; provided the deductions for such payments are approved by the employer.

(7) Labor organization dues and initiation fees, and such other labor organization charges permitted by law.

(8) Contributions authorized in writing by employees, pursuant to a collective bargaining agreement, to a political committee, continuing political committee, or both, as defined in section 3 of P.L.1973, c.83 (C.19:44A-3), established by the employees' labor union for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question , subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a); except that, with respect to public employees, no contribution shall be withheld or diverted from that employee's wages for the purposes set out in this paragraph (8).

(9) Contributions authorized in writing by employees to any political committee or continuing political committee, other than a committee provided for in paragraph (8) of this subsection, for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, subject to the conditions specified in section 2 of P.L.1991, c.190 (C.34:11-4.4a); in making a payroll deduction pursuant to this paragraph the administrative expenses incurred by the employer shall be borne by such committee, at the option of the employer.

(10) Payments authorized by employees for employer-sponsored programs for the purchase of insurance or annuities on a group or individual basis, if otherwise permitted by law.

(11) Such other contributions, deductions and payments as the Commissioner of Labor may authorize by regulation as proper and in conformity with the intent and purpose of this act, if such deductions are approved by the employer.

(cf: P.L.1997, c.35, s.1)

5. (New section) No union shall use dues collected by a private sector employer from that employer's employees for purposes other than the costs of engaging with that employer in collective bargaining, contract administration and grievance representation on behalf of that employer's employees; except that, if an employee provides a signed statement pursuant to section 4 of P.L.1965, c.173 (C.34:11-4.4) authorizing the deduction of an additional amount which may be used for other purposes, the employer shall collect that additional amount from that employee and the union may use that additional amount for other purposes agreed to by the employee.

6. This act shall take effect on the 90th day following enactment.

STATEMENT

This bill prohibits a bona fide employee organization from using any of the moneys that a public employer deducts from its employees' compensation for the purpose of paying employees' dues to that organization to engage in political activities. In addition, it prohibits a public employee from making a contribution through a public employee organization to a political action committee.

This bill also prohibits a union to use union dues collected by a private sector employer from that employer's employees for a purpose other than collective negotiations, contract administration and grievance representation unless an employee specifically authorizes, in writing, additional deductions which may be used for other purposes.

Under the bill, each public employee representative organization established pursuant to the "New Jersey Employer-Employee Relations Act," P.L.1941, c.100 (C.34:13A-1 et seq.) is required to provide, before August 31st of each year, to all of the public employees in each bargaining unit it represents and to the appeal board:

1. a statement, verified by an independent auditor or by some other suitable method permitted by the commission, listing its bargaining units, and by bargaining unit, dues paying members and the amount of dues and employees paying a representation fee in lieu of dues and that amount, actual expenditures by that employee organization for the most recently completed fiscal year under the categories of "political activities" and "representation activities" and, within representation activities, under categories of "representation activities for all employees in unit" and "representation activities only for members;" and

2. the results of its calculation of the ratio of political activity expenditures to total expenditures for that same fiscal year and its calculation of the ratio of "representation activities for all employees in unit" and "representation activities only for members."

Political activities is defined in the bill to mean "any activities carried out for the purpose of influencing in whole or in part any election for a State, local government or board of education office, including activities or causes of a partisan political or ideological nature engaged in by a public employee representative organization for those purposes and including contributions to a political committee, continuing political committee, or both, . . . established by the employees' majority representative for the purpose of making contributions to aid or promote the nomination, election or defeat of any candidate for a public office of the State or of a county, municipality or school district or the passage or defeat of any public question, . . . which activities are not pertinent to its duties as a bargaining representative. . ."

In the public sector, the bill maintains the distinction between a dues paying member and an employee who pays a representative fee in lieu of dues. The bill provides that both members and those who pay a representation fee in lieu of dues may challenge the veracity of the public employee representative organization's itemization of expenditures.